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Target is buying unwanted gift cards

Dec 29, 2015, 19:23 IST

Justin Sullivan/Getty Images

Target is buying unwanted gift cards, and giving customers store credit in return.

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The retailer is accepting gift cards from more than 600 brands, including Old Navy, Cheesecake Factory, Tiffany & Co, Staples, and Pottery Barn, CNN Money reports.

Customers must visit a Target store with their unwanted cards to make the exchange.

There's a slight catch, however.

There are fees taken out of the cards during the exchange, so the full value of the original gift card won't end up on the Target gift card.

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A Walmart card worth $100, for example, will be worth $85 in Target store credit after an exchange.

The exchange fees vary, and they are generally higher from a big-box store like Walmart, according to CNN Money.

Target is partnering with gift card exchange website Cardpool for the program.

Cardpool buys gift cards and offers cash in return.

Redeeming a $100 Walmart card by mail through Cardpool will pay out $90 cash. Redeeming it online will pay out $85.

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